MA3-3 Group-7 Manuscript PDF

POLYTECHNICUNIVERSITY OF THE PHILIPPINES Detailed Manuscript Presentation of LABOR RELATIONS MANAGEMENT As part in the requirement in Human Resource Management (HRMA 103) Submitted By: Gigayon, Jorene Paula Jamin, Shara Loyd L...

POLYTECHNICUNIVERSITY OF THE PHILIPPINES Detailed Manuscript Presentation of LABOR RELATIONS MANAGEMENT As part in the requirement in Human Resource Management (HRMA 103) Submitted By: Gigayon, Jorene Paula Jamin, Shara Loyd L. Maines, Ann Kathleen D. BSMA 3-3 Submitted To: Prof. Marifel I. Javier November 2024  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES TABLE OF CONTENTS Overview and Learning Objectives 3 Topics I. Theoretical Bases 4 II. Purpose of Labor Relations Function in HR Department 8 III. Advantages and Disadvantages of Labor Unions 11 IV. Three Phases of Labor Relations Process 15 V. Unionization in the Philippines 20 VI. Types of Unions in the Philippines 22 VII. Labor Code of the Philippines on Labor Relations 27 VIII. Labor Management Council (LMC) 31 Conclusion 37 References 38 2  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES OVERVIEW In any organization, labor relations management (LRM) serves as a cornerstone for fostering a harmonious and productive workplace. It revolves around managing the interactions between employers, employees, and unions to ensure balance, compliance, and mutual respect. By applying theories like John Dunlop's Industrial Relations Model and understanding the phases of organizing, negotiation, and contract administration, organizations can address disputes, enhance communication, and promote equitable solutions. Moreover, innovative strategies like Labor-Management Cooperation (LMC) offer an alternative to traditional union models, focusing on collaboration for shared success. This holistic approach to LRM supports organizational efficiency while safeguarding workers’ rights. LEARNING OBJECTIVES By the end of this lesson, you should be able to: Describe the core principles and theoretical models of labor relations management. Identify the roles of key actors—employers, employees, and government agencies—in shaping industrial relations. Understand the phases of labor relations, including organizing, collective bargaining, and contract administration. Explore the benefits and challenges of labor unions from both employer and employee perspectives. Analyze the concept of Labor-Management Cooperation (LMC) as an innovative approach to workplace collaboration. 3  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES I. THEORETICAL BASES 1.1. Labor Relations Management Labor Relations Management (LRM) is a vital function within any organization, as it revolves around managing the intricate relationship between employers and employees. The primary focus of LRM is to maintain harmonious industrial relations, which refers to the balance between labor and management that allows the organization to function efficiently while addressing the needs and rights of both parties. The role of LRM extends beyond simply ensuring compliance with labor laws. It involves proactively managing the communication, negotiations, and interactions between the workforce and the employer, aiming to prevent conflicts and resolving disputes that may arise. This is achieved through various strategies and techniques designed to create a positive work environment where both the employer and employees feel valued, heard, and respected. 1.2. John Dunlop's Industrial Relations Model John Dunlop’s industrial relations (IR) model, introduced in the 1950s, provides a foundational framework for understanding how industrial relations function within national economies. His theory sees the IR system as a subsystem of the broader society, aiming to resolve economic conflicts between employers and employees. This conceptual model is grounded in four key elements: actors, contexts, rules, and ideology, which interact to shape the structure of industrial relations. 4  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1.3. Dunlop’s Approach in Industrial Relations 1.4. Conceptual Model Four Key Elements 2. Actors in Industrial Relations The first element of Dunlop's model centers on the actors involved in industrial relations. These include: Employers and their respective organizations, who manage the workforce and shape employment conditions. Employees and their representative bodies, primarily trade unions, which negotiate for better terms and work conditions. Government and public agencies, which regulate and influence the interaction between employers and employees. Each actor plays a pivotal role in forming the policies and decisions that govern industrial relations. 5  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 3. Contexts Shaping Industrial Relations Industrial relations are shaped by contexts such as: Technology, which impacts how labor is organized and the types of skills needed. Market and budgetary constraints, which influence the financial capabilities of employers to meet workers' demands. The distribution of power within the broader society, which affects the relative strength of employers, workers, and the state in negotiations. These contexts help define the environment in which industrial relations occur, influencing how the actors interact and the rules they create. 4. Employment Rules: The Product of Interaction The third element of the model refers to the rules that emerge from the interactions between the actors. These rules can be: Unilateral, where one party (either the employer or employee) sets the terms. Jointly negotiated, where both parties collaborate to establish conditions. Tripartite, where the government intervenes to facilitate agreements between employers and employees. These rules define the substantive aspects (e.g., wages, working hours) and procedural aspects (e.g., dispute resolution, grievance procedures) of the employment relationship. 5. The Binding Ideology Finally, Dunlop emphasized the role of a binding ideology that holds the industrial relations system together. This ideology consists of shared beliefs and understandings about the system, such as: The legitimacy of trade unions. The role of the state in regulating industrial relations. 6  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES The acceptance of rights and responsibilities among employers and employees. This ideological framework fosters cooperation and helps stabilize industrial relations, ensuring that all actors accept the core principles of the system. 1.5. Criticism of Dunlop's Model While Dunlop’s model has been instrumental in shaping the study of industrial relations, it has faced criticism for its focus on stability and consensus. Critics argue that the model overlooks the conflictual nature of industrial relations, where power imbalances and external social and economic pressures can lead to significant tensions between employers, employees, and the state. The model’s limited ability to account for social conflict and changes within the broader society has been a significant point of critique. John Dunlop’s industrial relations model remains a crucial theoretical tool in understanding the dynamics of labor relations. By focusing on the interactions between key actors, the contexts they operate within, the rules they develop, and the shared ideology that binds them, Dunlop’s framework provides a comprehensive lens through which to view the functioning of industrial relations systems. However, its limitations in addressing the complexities of conflict and societal change suggest the need for continued development in the analysis of industrial relations. 7  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES II. THE PURPOSE OF LABOR RELATIONS FUNCTION IN THE HR DEPARTMENT Labor relations play a crucial role in managing the dynamic relationship between employers and employees. In organizations of all sizes, maintaining a balanced, productive, and positive work environment can be challenging due to differing perspectives, demands, and expectations from both leadership and staff. This is where the labor relations function within the Human Resources (HR) department becomes indispensable. The purpose of labor relations is not only to comply with legal requirements but also to foster communication, resolve conflicts, and ensure that both the employer's and the employees' interests are managed effectively. The key functions of labor relations can be summarized in the following six points: 2.1. To Preserve Relationships One of the primary roles of the labor relations function is to preserve and nurture strong employer-employee relationships. These relationships are often misunderstood as solely governed by legal obligations. In reality, effective labor relations are about creating an environment where open dialogue and mutual respect are the norms. A labor relations officer ensures that grievances are addressed fairly and that strategies are in place to boost employee engagement, which ultimately benefits both the company and its workforce. When relationships are maintained effectively, it leads to a more harmonious and productive workplace, reducing the risk of conflicts escalating into larger issues. 2.2. To Understand Multiple Viewpoints Navigating the complexities of employee relations often requires a balanced understanding of various perspectives. Labor relations officers bring a wealth of expertise in managing these different viewpoints. Especially for smaller and medium-sized enterprises (SMEs), where HR departments may not have specialized knowledge in labor relations, 8  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES having a dedicated expert is invaluable. This external or internal resource provides HR professionals with the guidance needed to manage diverse situations with insight and competence, making it easier to implement best practices and achieve favorable outcomes. 2.3. To Remain in Compliance with Labor and Employment Law A critical aspect of labor relations is ensuring that the company remains in compliance with labor and employment laws. Labor relations professionals are equipped with knowledge of the latest labor laws, regulations, and best practices, making them a key resource for HR departments. Their expertise helps to mitigate legal risks, ensuring that the company avoids costly legal disputes or fines. By navigating the complexities of labor law effectively, labor relations officers contribute to building a respectful, lawful, and well-structured workplace that benefits both employers and employees. 2.4. To Navigate Company and Department Challenges More Successfully Labor relations experts play a pivotal role in helping organizations navigate various challenges. Their ability to negotiate, mediate, and evaluate risks makes them influential advocates for both the company and its employees. These skills are essential in resolving conflicts, addressing performance issues, and handling disputes that may arise. By offering solutions that benefit both parties, labor relations officers help create a more resilient organization capable of overcoming challenges and emerging stronger. 2.5. To Negotiate Better Contracts Labor relations professionals are skilled in interpreting and administering labor contracts, particularly in environments that require collective bargaining. Their deep understanding of labor law, economics, and the latest trends in bargaining gives them the expertise needed to negotiate fair contracts. Whether it's addressing wage demands, resolving 9  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES grievances, or ensuring compliance with agreed-upon terms, a labor relations officer serves as a key mediator in these negotiations. Their role in this area is vital to maintaining smooth labor relations and ensuring that agreements are mutually beneficial and legally sound. 2.6. To Reinforce a Positive Onboarding Experience Labor relations professionals also play an important role in the onboarding process for new hires. A positive onboarding experience is essential for retaining top talent and integrating new employees into the company culture. Labor relations officers can assist in familiarizing new employees with the company’s policies, procedures, and labor expectations. By collaborating with HR to develop a comprehensive onboarding program, labor relations professionals ensure that new hires have a clear understanding of their rights and responsibilities, contributing to long-term retention and satisfaction. 10  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES III. ADVANTAGES AND DISADVANTAGES OF LABOR UNIONS 3.1. Labor Unions Labor unions strive to empower workers by providing them with a collective voice in determining the terms and conditions of their employment. Through united action, unions aim to represent the interests of their members in these crucial decisions. In the absence of strong union representation, not only are workers' wages vulnerable, but their safety and overall well-being are also at greater risk, especially in economies with low wages and inadequate regulatory safeguards. 3.2. Advantages of Labor Unions (Employer’s Point of View) a. Dispute Resolutions Labor unions typically resolve disputes with employers through a combination of negotiation, mediation, and arbitration. Collective bargaining is the primary method, involving direct discussions between union representatives and employers to reach a mutually agreeable contract. If negotiations fail, mediation may be employed, where a neutral third party facilitates discussions. Arbitration, where a neutral arbitrator makes a binding decision, is a final option. Additionally, unions may utilize grievance procedures to address specific workplace issues, escalating them through a step-by-step process involving mediation or arbitration if necessary. In some cases, unions may resort to strikes or legal action to protect workers' rights and interests. b. Access to a Skilled Workforce Labor unions can provide employers with access to a skilled workforce by investing in worker training, promoting job satisfaction, and ensuring fair labor practices. Unions often sponsor training programs, enhancing workers' skills and knowledge. They also contribute to lower turnover rates, leading to a more stable workforce and reduced hiring costs. By fostering a 11  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES positive work environment and addressing employee concerns, unions can improve morale and productivity. Additionally, industries with strong union presence often have a deeper pool of skilled workers, and some unions offer recruitment and placement services to connect employers with qualified candidates. 3.3. Advantages of Labor Unions (Employee’s Point of View) a. Voice and Representation Labor unions provide a powerful platform for workers to collectively voice their concerns and represent their interests. By uniting, workers gain significant bargaining power, enabling them to negotiate with employers on equal footing. This collective voice empowers workers to advocate for better wages, improved benefits, safer working conditions, and job security. This collective voice has a positive impact on labor relations by fostering a more equitable and harmonious workplace. It reduces power imbalances between employers and individual workers, leading to fairer treatment and reduced instances of exploitation. Additionally, unions promote open communication and dialogue between workers and management, leading to more effective problem-solving and conflict resolution. By providing a formal channel for worker grievances and concerns, unions contribute to a more stable and productive work environment. b. Job Security Labor unions significantly enhance job security for employees. Through collective bargaining, unions negotiate contracts with employers that often include provisions like just cause clauses, which require legitimate reasons for termination. Seniority rights can protect workers from layoffs based on factors other than performance or misconduct. Additionally, union contracts often include grievance procedures, allowing workers to challenge unfair 12  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES disciplinary actions or other workplace issues. These protections provide a sense of security and stability, especially during economic downturns. 3.4. Disadvantages Of Labor Unions (Employer’s Point of View) a. Structural Changes in the Economy While unions have historically been most powerful in urban workplaces, particularly those in the non-Southern regions, employing middle-aged men in blue-collar jobs, recent job growth has shifted towards women and young people in the service sector. Despite the potential to organize these groups, unions have struggled to do so in the private sector. Though significant economic shifts have occurred, they only account for a fraction of the overall decline in union membership. b. Increased Employer Resistance Many large employers today prioritize remaining union-free, a stark contrast to the past when some employers preferred dealing with unions. In the mid- 20th century, it was believed that unions could effectively represent employee interests, aiding management in better decision-making. However, increased global competition, deregulation, and other market pressures have shifted employer attitudes. These factors have led to greater resistance to unions, as companies seek to maintain flexibility and control in a rapidly changing economic landscape. 3.5. Disadvantages of Labor Unions (Employee’s Point of View) a. Reduced Individual Autonomy While unions advocate for collective bargaining rights, they also impose certain constraints on individual workers. Union contracts often dictate specific work rules, seniority rights, and grievance procedures. These rules, while designed to protect workers collectively, can limit individual flexibility 13  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES and decision-making power. For example, a union contract might restrict an employee's ability to negotiate their own salary or working hours, or it might limit their ability to transfer to different departments or locations. While these restrictions may be necessary to protect workers' rights as a whole, they can sometimes hinder individual aspirations and career advancement. b. Bureaucracy and Inefficiency Large, bureaucratic unions can sometimes be slow to respond to the needs of their members. This can lead to delays in grievance procedures, contract negotiations, or other important matters. Additionally, bureaucratic processes can sometimes be cumbersome and inefficient, leading to frustration among members. Moreover, some union leaders may prioritize the interests of the union itself over the needs of individual members. This can result in decisions that may not be in the best interest of all members, or that may disproportionately benefit certain groups of workers. 14  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES IV. THREE PHASES OF LABOR RELATIONS PROCESS Phases of Labor Relations Process Organizing Contract Negotiations Contract Administration 4.1. Organizing The organizing phase of labor relations is a critical step in the process of establishing a union. It involves a series of activities aimed at bringing together a group of employees, building support, and ultimately, gaining recognition from the employer. The process typically begins with a group of employees identifying shared concerns or problems within the workplace, such as low wages, poor working conditions, or unfair treatment. These employees then take the initiative to reach out to their colleagues to gauge interest in forming a union. This may involve holding informal meetings, distributing informational materials, or utilizing social media platforms to spread awareness and encourage participation. Once a significant level of interest is generated, the organizers begin collecting signed authorization cards from employees who support the formation of a union. These cards serve as evidence of employee support and are crucial for demonstrating to the employer that a sufficient number of workers desire union representation. With the necessary support, the union may then petition the employer for voluntary recognition. If the employer refuses to recognize the union voluntarily, the union can file a petition with the appropriate government labor board to conduct a union election. During this election, employees cast secret ballots to decide whether or not they want to be represented by the union. 15  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES If the union wins the election, it becomes the exclusive bargaining representative for the employees. This means that the union has the right to negotiate a collective bargaining agreement with the employer on behalf of all employees in the bargaining unit. The collective bargaining agreement will outline the terms and conditions of employment, including wages, hours, benefits, and working conditions. 4.2. Contract Negotiations Richard Walton and Robert McKersie suggested that labor–management negotiations could be broken into four subprocesses: distributive bargaining, integrative bargaining, attitudinal structuring, and intraorganizational bargaining. Distributive Bargaining. This is a competitive bargaining strategy where both sides attempt to maximize their gains at the expense of the other. It's a zero-sum game, meaning that any gain for one side results in a loss for the other. In labor negotiations, this might involve bargaining over wages, benefits, or working conditions. Integrative Bargaining. This is a cooperative bargaining strategy that seeks to find solutions that benefit both sides. It involves identifying shared interests and finding ways to create value for both parties. In labor negotiations, this might involve exploring innovative solutions to problems, such as flexible work arrangements or job sharing. Attitudinal Structuring. This refers to the relationship between the labor and management negotiators. A positive and trusting relationship can facilitate effective bargaining, as both sides are more likely to be open to compromise and creative solutions. On the other hand, a negative or adversarial relationship can hinder negotiations and lead to suboptimal outcomes. Intraorganizational Bargaining. This refers to the internal bargaining that occurs within both labor and management organizations. Different factions 16  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES within each side may have conflicting interests, and negotiators must balance these interests while also negotiating with the other side. For example, a union may need to balance the interests of high-seniority workers, who may prioritize job security, with the interests of low-seniority workers, who may prioritize wage increases. 4.3. Contract Administration After a collective bargaining agreement is reached, the contract administration phase begins. This involves the day-to-day implementation of the contract, including grievance procedures, arbitration, and other mechanisms for resolving disputes. a. Grievance Procedure steps: 1. Informal Resolution. The employee discusses the issue with their immediate supervisor or manager. This is often the first step in resolving a grievance informally. 2. Formal Grievance Filing. If the issue is not resolved informally, the employee files a formal written grievance, outlining the problem and the desired resolution. 3. Investigation. The employer conducts an investigation to gather information and evidence related to the grievance. This may involve interviewing witnesses and reviewing relevant documents. 4. Mediation or Arbitration. If the grievance cannot be resolved through internal procedures, mediation or arbitration may be used. Mediation involves a neutral third party who facilitates a discussion between the employee and employer to reach a mutually agreeable solution. Arbitration involves a neutral third party who hears both sides of the dispute and makes a binding decision. 17  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 5. Appeal. If the employee is dissatisfied with the outcome of the grievance process, they may have the right to appeal the decision to a higher level of management or to an external arbitrator. The specific steps and procedures may vary depending on the collective bargaining agreement between the union and the employer. However, the general process typically involves a combination of informal and formal procedures, with the goal of resolving disputes fairly and efficiently. Although the negotiation process (and the occasional resulting strike) receives the most publicity, the negotiation process typically occurs only about every three years, whereas contract administration goes on day after day, year after year. The two processes—negotiation and administration—are linked, of course. Vague or incomplete contract language developed in the negotiation process can make administration of the contract difficult. Such difficulties can, in turn, create conflict that can spill over into the next negotiation process. Furthermore, events during the negotiation process—strikes, the use of replacement workers, or violence by either side—can lead to management and labor difficulties in working successfully under a contract. b. Arbitration A procedure for resolving collective bargaining impasses by which an arbitrator chooses a solution to the dispute. The following due process questions are important for arbitrators to reach a decision. 1. Did the employee know what the rule or expectation was and what the consequences of not adhering to it were? 18  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 2. Was the rule applied in a consistent and predictable way? In other words, are all employees treated the same? 3. Are facts collected in a fair and systematic manner? An important element of this principle is detailed record keeping. Both employee actions (such as tardiness) and management‘s response (verbal or written warnings) should be carefully documented. 4. Does the employee have the right to question the facts and present a defense? An example in a union setting is a hearing with a shop steward present. 5. Does the employee have the right to appeal a decision? An example is recourse to an impartial third party, such as an arbitrator. 6. Is there progressive discipline? Except perhaps for severe cases, an arbitrator will typically look for evidence that an employee was alerted as early as possible that behavior was inappropriate and the employee was given a chance to change prior to some form of severe discipline, such as discharge. 7. Are there unique mitigating circumstances? Although discipline must be consistent, But note that, individuals differ in terms of their prior service, performance, and discipline record. All of these factors may need to be considered. 19  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES V. UNIONIZATION IN THE PHILIPPINES Even when a national union plays the most critical role in negotiating terms of a collective bargaining contract, negotiation occurs at the local level as well as over work rules and other issues that are locally determined. In addition, administration of the contract is largely carried out at the local union level. Consequently, the bulk of day-to- day interaction between labor and management takes place at the local union level. The local of an industrial-based union may correspond to a single large facility or to a number of small facilities. In a craft-oriented union, the local may cover a city or a region. The local union typically elects officers (like president, vice president, treasurer). Responsibility for contract negotiation may rest with the officers, or a bargaining committee may be formed for this purpose. Typically, the national union provides assistance, ranging from background data about other settlements and technical advice to sending a representative to lead the negotiations. Unionization in the Philippines is a complex landscape marked by both progress and challenges. While numerous labor unions exist, representing a significant portion of the workforce, union density remains relatively low compared to other countries. This is partly due to weak labor laws, which often fail to provide adequate protection for workers' rights. Additionally, employer resistance, particularly from large corporations, can hinder unionization efforts. Economic constraints, such as low wages and job insecurity, can further discourage workers from joining unions. Despite these challenges, Philippine labor unions play a crucial role in advocating for workers' rights and improving working conditions. They strive to improve wages, 20  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES benefits, and safety standards, and to protect workers from unfair dismissal and job loss. By advocating for social justice, unions contribute to a more equitable society. However, these unions often face limitations in effectively representing their members and engaging in collective bargaining due to limited resources and capacity. To overcome these challenges, Philippine labor unions must continue to adapt to the changing economic and political landscape. By strengthening their organizations, building alliances with other social movements, and leveraging technology, unions can enhance their capacity to represent workers' interests and improve their working conditions. 21  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES VI. TYPES OF UNIONS IN THE PHILIPPINES Labor relations play a crucial role in shaping the work environment by promoting harmony between employees and employers. Effective labor relations ensure that workers’ rights are protected while maintaining productivity and compliance with the law. In the Philippine context, understanding labor relations processes as outlined in the Labor Code of the Philippines (Presidential Decree No. 442) is essential for both employers and employees. This manuscript will delve into the types of unions in the Philippines, the provisions of the Labor Code, and explore Labor-Management Cooperation (LMC) as an alternative to traditional labor organizations. Types of Unions in the Philippines Labor unions in the Philippines are organized groups of workers established to safeguard their rights, improve working conditions, and enhance their welfare. These unions have a critical role in advocating for better wages, job security, and fair treatment within the workplace. Each type of labor union serves a distinct purpose and addresses specific needs in the workforce. Below is a more expansive explanation of the different types of labor unions in the Philippines: 6.1. Trade Unions Trade unions are formed by workers who share the same trade or profession. These unions represent employees working within the same industry, and they focus on issues unique to that particular trade. They primarily aim to ensure fair compensation, safe working environments, and address labor-related concerns specific to their field. A trade union negotiates on behalf of its members to improve wages, benefits, and working conditions tailored to the nature of their work. Key Focus Areas: Wage standards for the specific trade 22  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Occupational safety and health regulations Skill development and training specific to the trade Fair work hours and conditions within the trade Example: The National Federation of Labor (NFL) is an example of a trade union. It represents workers in manufacturing and service sectors and addresses industry-specific concerns such as fair wages, safety protocols, and workers' benefits. For example, in manufacturing, the NFL advocates for better work environments and health benefits for workers exposed to potentially harmful machinery. 6.2. Industrial Unions Industrial unions differ from trade unions in that they organize workers from various trades but within a single industry. These unions bring together individuals from different jobs under one umbrella to focus on broader issues that affect workers within an entire industry, such as industrial policies, wage rates, and work conditions that transcend individual job functions. These unions advocate for collective action to address industry-wide issues, such as unfair practices or safety standards that impact all workers in the sector. Key Focus Areas: Uniting workers from different trades to strengthen bargaining power Improving industry-wide labor laws and conditions Advocating for collective agreements that benefit all workers within the industry, not just individual trades Lobbying for industry reforms at the national level Example: The Philippine Metalworkers Alliance (PMA) is an industrial union that represents workers in the metalworking industry. It unites workers from various 23  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES trades such as welders, machinists, and metal fabricators. The PMA advocates for higher wages, job security, and improved safety measures within the metal industry. It also negotiates with employers to ensure fair compensation for all workers in the sector, regardless of their specific trade. 6.3. Craft Unions Craft unions represent workers who share a common skill or craft, regardless of the industry in which they are employed. These unions focus on the preservation and advancement of specific skills and trades. Craft unions often emphasize high-level expertise and professional development in a particular craft, advocating for higher pay and improved working conditions for skilled workers. Unlike trade or industrial unions, which may represent a broader range of workers, craft unions are more specialized and focus on ensuring that workers' professional skills are valued. Craft unions may also negotiate for training programs, certification opportunities, and career advancement for their members. Key Focus Areas: Preserving and enhancing specialized skills Ensuring competitive wages for skilled workers Supporting professional development and training Protecting the standards of the specific craft or profession Example: The United Workers of the Philippines (UWP) is a craft union that represents skilled workers across various sectors. This includes electricians, carpenters, plumbers, and other specialized trades. The UWP advocates for better compensation for skilled labor, improved workplace conditions, and the ongoing education of its members to keep their skills current and valuable in the workforce. 24  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 6.4. Company Unions Company unions are unions that are formed within a single company. These unions focus on representing the employees of that particular company, addressing issues specific to the workplace, such as wages, benefits, work conditions, and job security. While company unions are designed to serve the interests of workers in one company, they can be vulnerable to external pressures. Often, company unions may be influenced by the employer, potentially weakening their ability to negotiate on behalf of workers. The National Labor Relations Commission (NLRC) closely monitors these unions to ensure that they act in the best interests of employees and that they are not unduly influenced by the company management. Key Focus Areas: Addressing company-specific issues like pay scales, hours, and job security Negotiating on behalf of employees for better benefits and workplace policies Acting as a mediator between employees and company management to resolve conflicts Protecting employees from unfair treatment within the company Example: San Miguel Corporation Employees Union (SMCEU) is a company union that represents the employees of San Miguel Corporation. It addresses company- specific issues, such as wage negotiations and work conditions within the corporation. However, company unions like SMCEU can be scrutinized for being too closely linked to the company’s management, which can sometimes compromise their independence. 6.5. Federations and Confederations Federations are groups of smaller, independent unions that come together to form a larger organization. Confederations are even broader, typically consisting of 25  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES federations or unions from various industries and sectors. These umbrella organizations aim to coordinate labor efforts across a wide spectrum of industries to improve working conditions and advance workers’ rights at a national level. They work together to lobby for policy changes, push for labor reforms, and negotiate with government bodies to address the needs of workers across the country. Key Focus Areas: Coordinating efforts between different unions to achieve common goals Strengthening the bargaining power of labor organizations at the national level Lobbying for changes in national labor laws and policies Providing support and resources to smaller unions Examples: The Trade Union Congress of the Philippines (TUCP) is a federation that represents various unions across different sectors, advocating for workers’ rights and labor reforms on a national scale. Kilusang Mayo Uno (KMU) is a confederation that unites several federations and unions across industries to push for social justice and workers' welfare. It works towards national labor reforms, mobilizing workers to address common issues such as wage increases, job security, and labor law improvements. These unions serve as a collective voice for employees, helping to ensure job security and fairness in the workplace. 26  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES VII. THE LABOR CODE OF THE PHILIPPINES ON LABOR RELATIONS The Labor Code of the Philippines serves as the primary legal framework that governs labor and employment practices in the country. Its primary purpose is to protect the rights of workers while promoting the establishment of harmonious and just relationships between workers and employers. Understanding the labor relations processes provided in the Labor Code is essential for both workers and employers, ensuring fair treatment, proper dispute resolution, and compliance with the law. This manuscript provides a detailed explanation of these processes, offering insights into how both parties can navigate labor relations within the legal framework. 7.1. Labor Relations Processes in the Labor Code of the Philippines Labor relations encompass the interactions, agreements, and dispute resolutions between workers, employers, and labor unions. The Labor Code sets forth guidelines for managing these relationships in a way that promotes fairness and protects both parties’ rights. Here’s an in-depth look at these processes: 1. The Right to Organize and Collective Bargaining The Labor Code guarantees the right of workers to form unions and engage in collective bargaining. This fundamental right allows workers to organize, collectively voice their concerns, and negotiate with their employers for better working conditions, wages, and benefits. The process of forming a union begins with registration with the Department of Labor and Employment (DOLE) or the National Labor Relations Commission (NLRC). Once a union is recognized, it has the legal authority to represent the workers during negotiations with the employer. Collective bargaining involves discussions between the union and the employer to agree on terms such as wages, working hours, benefits, and other conditions of 27  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES employment. These agreements are formalized in Collective Bargaining Agreements (CBAs), which are legally binding for the agreed-upon period, typically 1 to 3 years. Both parties must engage in good faith during these negotiations, meaning they should be open to compromise and respectful of each other’s interests. 2. Mediation, Conciliation, and Voluntary Arbitration When disputes arise, the Labor Code provides mechanisms for resolving them before they escalate into serious conflicts. These mechanisms include mediation, conciliation, and voluntary arbitration. Mediation is the first step in the dispute resolution process. A neutral third party, typically from DOLE, helps facilitate a dialogue between the disputing parties. The goal is to resolve the issue through mutual agreement, preventing the need for formal litigation. If mediation fails, the next step is conciliation, a more formal process where both parties are encouraged to come to a settlement. This is often facilitated by a conciliator who works to find a compromise. If conciliation does not lead to an agreement, the dispute moves to voluntary arbitration. In this process, an impartial arbitrator listens to both sides and makes a binding decision. Arbitration is typically used for complex issues that cannot be resolved through mediation or conciliation, such as disagreements over collective bargaining terms or unfair labor practices. 3. Strikes, Lockouts, and the Right to Strike The Labor Code acknowledges workers’ right to strike, but this right is subject to specific conditions. A strike is a form of protest that workers use when they feel their rights are being violated or when collective bargaining negotiations break down. However, before a strike can occur, the workers must hold a secret ballot, ensuring that the decision is supported by the majority. A cooling-off period of 30 days is also required after the vote, giving both sides time to reconsider their 28  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES positions and attempt to resolve the dispute through mediation or conciliation. If the strike is still necessary, the workers must notify the employer and DOLE before it begins. On the other hand, employers can also resort to lockouts in response to a strike or as a way to protect the business. Lockouts are generally used when there are disputes that affect the continuity of business operations. However, like strikes, lockouts must meet certain legal requirements to be considered lawful. 4. Termination and Dismissal of Employees The Labor Code specifies both just causes and authorized causes for terminating employees. Just causes include serious misconduct, gross neglect of duty, fraud, and willful breach of trust. Employers must have clear evidence to justify dismissal under these grounds. Importantly, employees facing dismissal for just causes must be given the opportunity to defend themselves through a due process hearing. Authorized causes, on the other hand, involve situations such as business closure, retrenchment (downsizing), or an employee’s illness that prevents them from working. In such cases, the employer is required to provide separation pay to the affected employee. For authorized causes, the employer must comply with the legal requirements for notification and compensation. 5. The National Labor Relations Commission (NLRC) The National Labor Relations Commission (NLRC) is a key body in the Labor Code, tasked with resolving disputes between employers and employees. The NLRC’s jurisdiction includes unfair labor practices, illegal dismissals, and the enforcement of collective bargaining agreements. When a dispute cannot be resolved through mediation or conciliation, either party can file a complaint with the NLRC. 29  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Once a case is filed, the NLRC investigates the issue and issues a decision. If either party disagrees with the decision, they can file an appeal with the Court of Appeals, which reviews the NLRC’s ruling. 30  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES VIII. LABOR MANAGEMENT COUNCIL (LMC) 8.1. Labor-Management Cooperation (LMC): An Alternative to Labor Organizations Labor-management cooperation (LMC) refers to a collaborative approach where employers and employees work together to improve workplace conditions, enhance productivity, and address mutual concerns. LMC is often seen as an alternative to traditional labor unions, where the focus is more on negotiation and conflict resolution through collective bargaining. One of the key structures in this cooperative approach is the Labor Management Council (LMC), which serves as a formal body for fostering cooperation between labor and management. 8.2. Definition and Concept of LMC Labor-management cooperation (LMC) is a partnership between employers and workers aimed at promoting harmonious industrial relations. The main objective is to address workplace issues through dialogue, cooperation, and shared responsibility, rather than through confrontational methods such as strikes or legal battles. In this model, both parties contribute to decision-making processes and work toward common goals. The Labor Management Council (LMC) is an integral component of this approach. It is a formal body established within companies or organizations to facilitate communication, discuss key issues, and implement strategies for the collective benefit of workers and employers. LMCs are particularly useful in situations where traditional labor unions may be absent, less effective, or not the preferred method of addressing labor-related concerns. 31  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 8.3. Key Features of Labor-Management Cooperation 1. Open Communication The foundation of LMC is open communication between labor and management. Both parties must be willing to express their concerns and discuss issues transparently. The Labor Management Council serves as a platform for this communication, ensuring that both sides have equal access to information and the opportunity to participate in decision-making processes. 2. Joint Decision-Making One of the main characteristics of LMC is the practice of joint decision-making. The Labor Management Council, composed of representatives from both the workforce and the management team, collaborates on key decisions regarding company policies, working conditions, wages, benefits, and other relevant matters. This system ensures that all voices are heard, and decisions are made in the best interests of both parties. 3. Conflict Resolution LMC emphasizes resolving conflicts through negotiation rather than confrontation. When disputes arise, the Labor Management Council plays a pivotal role in mediating and finding mutually agreeable solutions. The goal is to prevent industrial actions such as strikes, which can be detrimental to both workers and the organization. Instead, LMCs facilitate a cooperative environment to address grievances. 4. Shared Responsibility for Success Under LMC, both management and labor share responsibility for the overall success of the organization. This shared responsibility includes working together to increase productivity, reduce operational costs, and maintain a positive work environment. 32  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Workers are encouraged to contribute their ideas for improvement, and management supports efforts to ensure the welfare of employees. 5. Focus on Mutual Benefits Unlike traditional labor unions that often view management as the opposition, LMC fosters a sense of mutual benefit. The aim is to find solutions that work for both workers and employers. This approach helps build trust and cooperation, making it easier to reach agreements that are favorable to both parties. 8.4. Components of Labor Management Cooperation: The Labor Management Council (LMC) The Labor Management Council (LMC) is a critical structure in the implementation of LMC within an organization. It acts as a formal mechanism for workers and employers to meet regularly and discuss matters that affect the workplace. The council is typically composed of an equal number of representatives from both management and labor, ensuring that both sides have an equal voice in decision-making. Key components of the Labor Management Council (LMC) include: 1. Representation The LMC consists of representatives from both management and the workforce. These representatives are often elected by their respective groups, ensuring that the council has a balanced perspective. The workforce representatives are typically union members or elected employee representatives, while the management representatives are appointed by the company’s leadership. 2. Regular Meetings The LMC holds regular meetings to discuss ongoing issues, upcoming challenges, and potential solutions. These meetings provide a forum for both sides to raise 33  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES concerns, share feedback, and make decisions. They also offer an opportunity for both parties to collaborate on new initiatives that can benefit the organization and its employees. 3. Agenda Setting The agenda for LMC meetings is set collaboratively, with both management and labor contributing to the topics to be discussed. Common issues addressed in these meetings include workplace safety, employee benefits, wage issues, working conditions, and productivity improvements. 4. Conflict Resolution and Mediation When conflicts arise, the LMC serves as a mediator between management and labor. The council facilitates discussions to resolve disputes amicably and efficiently, without resorting to strikes or other forms of industrial action. This function of the LMC is essential in ensuring that disagreements are addressed in a non-adversarial manner. 5. Implementation of Agreements Once agreements are reached in the LMC, the council ensures that these decisions are implemented effectively. Whether the issue concerns improving safety measures, introducing new training programs, or addressing wage concerns, the council oversees the implementation process and monitors progress. 6. Training and Education The LMC may also play a role in providing training and educational programs for both workers and management. These programs can cover topics such as labor rights, effective communication, conflict management, and teamwork. The goal is to equip both parties with the knowledge and skills needed to foster a productive and cooperative workplace. 34  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 8.5. Benefits of Labor-Management Cooperation (LMC) 1. Improved Industrial Relations The LMC promotes harmonious relationships between labor and management by focusing on collaboration instead of confrontation. This leads to a reduction in labor disputes and a more stable working environment. 2. Enhanced Productivity When employees are engaged in decision-making processes, they are more motivated to contribute to the organization’s success. The cooperative atmosphere fostered by the LMC often results in increased productivity and greater efficiency. 3. Better Working Conditions The LMC provides a platform for workers to voice concerns regarding their working conditions, which management can address proactively. This can lead to improved workplace safety, better benefits, and higher employee satisfaction. 4. Cost Savings for Employers By resolving issues cooperatively and preventing industrial actions, employers can avoid the high costs associated with strikes, legal battles, and work disruptions. Additionally, the LMC helps in streamlining processes that can lead to cost savings. 8.6. Challenges of Labor-Management Cooperation While LMC offers numerous benefits, challenges still exist in its implementation. These include: Mistrust Between Labor and Management: In organizations with a history of strained relations, building trust can be difficult. Inequitable Power Dynamics: If either side holds more power, the effectiveness of the LMC may be compromised. 35  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Resistance to Change: Both management and workers may be resistant to shifting from traditional labor union practices to a more cooperative model. 8.7. LMC in the Philippine Context In the Philippines, the Labor Management Council (LMC) is promoted by the Department of Labor and Employment (DOLE) as a means to encourage better labor relations and avoid the adversarial nature of traditional unions. LMC programs have been adopted by various companies, especially in sectors where the relationship between labor and management is key to overall success. The program has shown promising results in improving workplace environments and industrial relations. 36  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES CONCLUSION Labor Relations Management (LRM) is pivotal in fostering equitable and productive interactions between employers and employees. Grounded in theories like John Dunlop’s Industrial Relations Model, the manuscript has highlighted the theoretical foundations, essential processes, and practical applications of labor relations. From the advantages and challenges of unionization to the innovative framework of Labor- Management Cooperation (LMC), the discussion underscores the necessity of balancing organizational goals with workers' rights. By ensuring adherence to labor laws and promoting open communication, organizations can cultivate a harmonious workplace that values collaboration over conflict. In the Philippine context, strengthening unions and fostering cooperative mechanisms like LMC remain integral for addressing economic and social challenges. As labor relations continue to evolve, embracing innovative, inclusive approaches will be key to sustaining workforce engagement and organizational success. 37  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES REFERENCES Forbes Human Resources Council. (2022, February 3). Six reasons HR departments need a labor relations expert on board. Forbes. Retrieved from https://www.forbes.com/councils/forbeshumanresourcescouncil/2022/02/03/six- reasons-hr-departments-need-a-labor-relations-expert-on-board/ International Labour Organization. (n.d.). Collective agreements contribute to fighting inequality, says ILO. Retrieved from https://www.ilo.org/resource/news/collective- agreements-contribute-fighting-inequality-says-ilo Lawyer Philippines. (n.d.). Addressing poor and biased management in the Philippine workplace. 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